Broadcom forecasts first-quarter revenue above estimates (updated)

Broadcom

12/12/2024 21:25

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       Dec 12 (Reuters) - Broadcom  AVGO.O  forecast its
first-quarter revenue above Wall Street estimates on Thursday,
betting on booming demand for its custom artificial intelligence
chips and networking gear from cloud providers doubling down on
GenAI infrastructure adoption. 
    The company forecast revenue of about $14.6 billion for the
first quarter, compared with analysts' average estimate of
$14.57 billion according to data compiled by LSEG. 
    Shares of the Palo Alto, California-based company rose 4.1%
in extended trading, having gained about 60% so far this year as
one of the largest beneficiaries of a rally in AI-linked shares.
    Demand for the company's networking chips that help move
around vast amounts of data used by applications such as
OpenAI's ChatGPT has also increased, as businesses double-down
on investments in GenAI infrastructure. 
    The company recorded net income of $4.32 billion in the
fourth quarter, up around 23%. Analysts expected $3.56 billion. 
 
    
    

 (Reporting by Arsheeya Bajwa and Zaheer Kachwala in Bengaluru;
Editing by Krishna Chandra Eluri)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))